1. Malaysia launched its National Energy Transition Roadmap (NETR) on July 27, 2023 with a strong focus on transforming the economy and creating potential business opportunities in the energy sector. Phase 1 of the NETR unveiled 10 flagship catalyst initiatives that aim to attract investments and generate job opportunities while reducing CO2 emissions by over 10 million tons annually.
2. The major business opportunities highlighted in the NETR are as follows:
ASEAN’s Largest Solar Plant: Malaysia plans to build a one-gigawatt integrated solar photovoltaic (PV) plant, the largest of its kind in Southeast Asia. This project presents significant investment opportunities for companies in the renewable energy sector, including solar equipment manufacturers, EPC contractors, and operators.
3. Household Rooftop Solar Initiative: The NETR introduces a mechanism that allows households to earn income by leasing out rooftops for solar panel installations. This initiative opens up opportunities for businesses in the solar leasing and installation sector.
4. Renewable Energy Zone: The establishment of a one-gigawatt integrated renewable energy zone provides potential investment opportunities in the renewable energy sector.
5. Large-Scale Solar Parks: The plan to set up five centralized large-scale solar parks, each with a capacity of 100MW, co-developed by national power utility company TNB, offers opportunities for companies involved in solar project development and operations.
6. Energy Storage Systems: The NETR emphasizes the need for utility-scale energy storage systems, which opens up opportunities for companies specializing in energy storage technologies and solutions.
7. Green Hydrogen and Carbon Capture and Storage: The roadmap highlights initiatives in green hydrogen production in Sarawak and carbon capture and storage projects. These initiatives create potential opportunities for companies in the hydrogen and CCS sectors.
8. Future Mobility and Charging Infrastructure: The NETR includes the installation of 10,000 charging stations along highways and commercial buildings by 2025. This development could present opportunities for companies involved in EV charging infrastructure and services.
9. Biomass Demand Creation: The plan to use used cooking oil and waste as feedstock for biomass and biofuels creates opportunities in the biomass and bioenergy sectors.
10. Overall, the NETR advances a range of investment opportunities across the renewable energy sector and related industries in Malaysia. Businesses that align their offerings with the country’s energy transition goals have the potential to thrive and contribute to Malaysia’s economic and environmental objectives. Phase 2 of the NETR will be launched in the second half of 2023.
NETR INITIATIVE TO BENEFIT POWER PLAYERS
1. CGS-CIMB Research has retained its “neutral” stance on the utilities sector ahead of the launch of the National Energy Transition Roadmap (NETR) today, acknowledging that the initiative could be beneficial to power players in the industry.
2. The research firm believes the NETR could reignite domestic investments and broader economic development while also reviving interest in the utility sector, although it is still indifferent towards the prospects of gas companies in the country.
3. In a pre-emptive note published yesterday, CGS-CIMB Research said the NETR aims to outline key initiatives, regulatory reforms and policies for the country to achieve Malaysia’s 70% renewable energy (RE) capacity target from the current 24%, alongside reaching carbon neutrality by 2050.
4. “The government guided that the programme would entail investments worth an estimated RM637bil. Key areas of focus include solar; hydro; hydrogen and ammonia; carbon capture, usage and storage; battery storage and building supply chain manufacturing capabilities domestically,” the research unit reported.
5. Phase 1 of the initiative will involve the announcement of 10 national flagship projects worth RM25bil to be developed with participation of the private sector.
6. By leveraging on the country’s central location and abundance of natural resources, CGS-CIMB Research noted the government is aiming to take a leadership role in spearheading the energy transition agenda in the region.
7. Greater RE adoption will necessitate grid and distribution network system upgrades to support two-way and alternating energy flow while maintaining voltage stability. “As part of the reforms, the government intends to incorporate a grid upgrade fee into the RE tariff to lighten the capital expenditure burden on owners of the national grid,” it noted.
Source:
https://www.trade.gov/market-intelligence/malaysia-national-energy-transition-roadmap
https://www.thestar.com.my/business/business-news/2023/07/27/netr-initiative-to-benefit-power-players
